Poverty Could Fall 5% Through Family and Farmer Cards, Inflation Reforms Needed

Bangla Press Desk:  Rising energy, electricity and fertiliser costs due to the Middle East war, coupled with corruption, irregularities in the banking sector and persistent inflation inherited from the previous government, are putting pressure on Bangladesh’s economy. Low-income and working-class people are bearing the brunt of the crisis.

Family Cards, Farmer Cards and social protection programmes could play an important role in reducing poverty, protecting purchasing power and helping vulnerable households cope with the economic strain, said Dr Rashed Al Mahmud Titumir, the Prime Minister’s adviser on finance and planning.

He made the remarks while speaking to journalists on Friday (October 16) on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank Group in Bangkok, Thailand.

Titumir said persistent inflation and the Middle East crisis had increased the cost of living. Higher international prices for fuel and other essential commodities raise Bangladesh’s import bills and increase production costs in transport, electricity generation, agriculture and industry. This, in turn, creates further risks of price increases for goods and services.

He said the war in the Middle East was not a crisis created by Bangladesh, just as the current government was not responsible for banking irregularities and financial looting during the previous administration. However, he added, the government had taken responsibility for restoring economic stability and mitigating the effects of these challenges.

Family and Farmer Cards expected to reduce poverty

Titumir identified the Family Card and Farmer Card initiatives as key government programmes to address poverty and inflation.

Citing recent World Bank reports and assessments by other international organisations, he said persistent inflation had increased the risk of people falling below the poverty line. According to World Bank estimates cited by the adviser, around eight million people in Bangladesh have fallen below the poverty line because of prolonged inflation.

He said assessments by independent research organisations suggested that effective implementation of the Family Card programme could reduce the poverty rate by around five percentage points.

The programmes aim to help people who have already fallen into poverty recover while preventing more households from slipping below the poverty line.

Titumir acknowledged shortcomings in beneficiary selection under previous social safety-net programmes. Many people who qualified for assistance were excluded, while others who did not meet the criteria were included.

To address the problem, the government is emphasising the use of digital public infrastructure to ensure that support reaches the intended beneficiaries.

He added that the Family Card and Farmer Card initiatives were included in the Prime Minister’s election manifesto and the country’s five-year economic strategy. However, their effectiveness would depend on accurate beneficiary selection, transparency and efficient implementation.

Efforts to ease pressure from rising energy costs

The Middle East conflict has increased international import costs for fuel, liquefied natural gas (LNG) and fertiliser, putting additional pressure on different sectors of the economy.

Titumir said the government was cautious about ensuring that rising energy and electricity costs did not place an excessive burden directly on ordinary people. It was therefore trying to limit additional pressure on households when adjusting fuel prices, while also seeking to prevent further increases in farmers’ production costs.

Although Bangladesh was not responsible for creating the crisis, he said, the government was working to manage its consequences out of a sense of responsibility to the public.

He added that keeping diesel prices unchanged should also be considered as part of efforts to ease the burden on farmers amid rising costs in the energy and other sectors.

Revenue growth has increased, adviser says

Titumir stressed the importance of increasing domestic revenue to support economic recovery.

He said tax exemptions, tax